Tycoons get PCC nod for $3.3-B LNG deal

The Philippines' drive toward energy security and sustainability has received a major boost as the joint power venture among three of the country's biggest tycoons moves a step closer to completion.

- By BRIX LELIS

The Philippine Competition Commission (PCC) has approved the $3.3-billion liquefied natural gas (LNG) deal among tycoons Manuel V. Pangilinan, Ramon Ang and Sabin Aboitiz, a landmark development expected to bring down power costs.

The deal, first reported by The STAR, involves Pangilinan-led Meralco PowerGen Corp. (MGen) and Aboitiz-owned Therma Natgas Power Inc. (TNPI) jointly investing in gas-fired facilities under Ang's San Miguel Global Power Holdings Corp. (SMGP).

Through their joint venture Chromite Gas Holdings Inc., MGen and TNPI will acquire 67 percent of the power plants, with SMGP retaining a 33-percent stake in the assets.

As part of the agreement, Chromite Gas and SMGP will also buy out Linseed Field Corp., which operates the LNG terminal in Batangas.

MGen is the power generation unit of energy powerhouse Manila Electric Co. (Meralco), while SMGP is the energy arm of conglomerate San Miguel Corp. (SMC).

TNPI, meanwhile, is 100-percent owned by Aboitiz Power Corp., which holds the power business of the Aboitiz Group.

In a joint statement, MGen, AboitizPower and SMGP welcomed PCC's decision, saying the transaction is expected to "boost the country's energy security and infrastructure."

"The companies expressed their appreciation for the PCC's thorough review process and affirmed their shared commitment to advancing a competitive energy market that delivers real benefits to Filipino consumers," the statement read.